A high sell-through means you ordered the right amount; a low one means excess stock that may need markdowns. Fashion retailers often aim for 60–80% over a season; grocery items need much higher rates because they spoil.
How to use the Sell-Through Rate Calculator
- Units received (or beginning inventory)
- Units sold
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the number of units received (beginning inventory plus deliveries) and the units sold in the period.
Tips
- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.
Common mistakes to avoid
- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.
Inputs explained
| Field | What to enter |
|---|---|
| Units received (or beginning inventory) | A number |
| Units sold | A number |
What each result means
- Sell-through rate = [Units sold]÷[Units received (or beginning inventory)]×100
- Units left = [Units received (or beginning inventory)] – [Units sold]
Example values
How the main result changes when Units received changes and everything else stays at the example values above:
| Units received (or beginning inventory) | Sell-through rate (%) |
|---|---|
| 600 | 130 |
| 900 | 86.67 |
| 1,200 | 65 |
| 1,500 | 52 |
| 1,800 | 43.33 |
| 2,400 | 32.5 |
Formula
Sell-through rate = units sold ÷ units received × 100Worked example
Inputs — Units received (or beginning inventory): 1,200; Units sold: 780.
Results — Sell-through rate = 65 %; Units left = 420; Rating = Healthy.
Frequently asked questions
What is a good sell-through rate?
Around 40–80% a month for many retailers, depending on the product.
How is it different from inventory turnover?
Sell-through is a percentage of stock sold in a period; turnover counts how many times stock is replaced.
What if my sell-through is low?
Reduce orders, run promotions or reposition the product.
What formula does the Sell-Through Rate Calculator use?
Sell-through rate = units sold ÷ units received × 100.